Correlation Between Interpublic and Infracommerce CXaaS

Can any of the company-specific risk be diversified away by investing in both Interpublic and Infracommerce CXaaS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Interpublic and Infracommerce CXaaS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Interpublic Group and Infracommerce CXaaS SA, you can compare the effects of market volatilities on Interpublic and Infracommerce CXaaS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Interpublic with a short position of Infracommerce CXaaS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic and Infracommerce CXaaS.

Diversification Opportunities for Interpublic and Infracommerce CXaaS

-0.87

Correlation Coefficient

Interpublic  Infracommerce CXaaS

Pay attention - limited upside

The 3 months correlation between Interpublic and Infracommerce is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Interpublic Group and Infracommerce CXaaS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infracommerce CXaaS and Interpublic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Interpublic Group are associated (or correlated) with Infracommerce CXaaS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infracommerce CXaaS has no effect on the direction of Interpublic i.e., Interpublic and Infracommerce CXaaS go up and down completely randomly.

Pair Corralation between Interpublic and Infracommerce CXaaS

Assuming the 90 days trading horizon The Interpublic Group is expected to generate 0.12 times more return on investment than Infracommerce CXaaS. However, The Interpublic Group is 8.51 times less risky than Infracommerce CXaaS. It trades about -0.03 of its potential returns per unit of risk. Infracommerce CXaaS SA is currently generating about -0.08 per unit of risk. If you would invest  16,268  in The Interpublic Group on July 23, 2025 and sell it today you would lose (1,457) from holding The Interpublic Group or give up 8.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

The Interpublic Group  vs.  Infracommerce CXaaS SA

Interpublic Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Interpublic Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Interpublic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Infracommerce CXaaS

Risk-Adjusted Performance

Weakest

Over the last 90 days Infracommerce CXaaS SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Interpublic and Infracommerce CXaaS

The main advantage of trading using opposite Interpublic and Infracommerce CXaaS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic position performs unexpectedly, Infracommerce CXaaS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Infracommerce CXaaS will offset losses from the drop in Infracommerce CXaaS's long position.

The idea behind The Interpublic Group and Infracommerce CXaaS SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.